THE NEXT GOVERNMENT.

BARISAN RAKYAT SHALL FORM THE NEXT GOVERNMENT!

SOS

SOS
nation in distress

The World Anthem


WE ARE ALL OF 1 RACE, THE HUMAN RACE.


30/05/2015

PM GROSSMAJIB, 1GDB - $51 BILLION IN ASSETS, BUT NO CASH FLOW TO SERVICE INTEREST & DEBT? WHAT ABOUT $49 BILLION IN LIABILITIES? WTF ARE YOU HIDING?

by gross development and private funding initiative bunkum, donplaypuks® intrepid correspondent for debt affairs

Once again, instead of coming clean and being transparent about the details of its "investments" and true state of affairs at 1GDB (1 Gross Development Bunkum), PM Grossmajib has defended his management of 1GDB's borrowings and serious cash flow deficit by bleating the slogan that 1GDB has RM51 billion in assets

In particular, the Rakyat has been asking how the RM46 billion 1GDB borrowed has been "invested". 

PM Grossmajib has been openly opaque by saying that 1GDB has passed a blood test conducted by its internal doctors, and so it's as healthy as a bouncing baby.

This is also like saying that a bedridden man in ICU should whip himself up and get back to work, since he has his major faculties intact, while ignoring his two missing hands and legs.

From the beginning, it was a venture in folly. 1GDB was created as a national, not a Bumiputra, sovereign fund from the ashes of the  wound up RM10 billion Terengganu Investment Authority. It was 100% the idea of PM Grossmajib, whose principal adviser was the 20-something tub of lard of a grey whale, "investment guru" Jho Paris Hilton. 

Whatever brilliant discussions took place between Jho and PM Grossmajib, it's incredible that their settled business plan resulted in 1GDB being financed with a paid up capital of RM1 million and borrowings of RM46 billion, guaranteed one way or another by the Taxpayer. A 100% government owned company cannot abdicate from its debts by filing for bankruptcy and asking the lenders and creditors to take a hike. In any event, some RM10 billion of the RM46 billion debt is irrevocably guaranteed by the Federal Government. So, there's no running away from Armageddon!

PM Grossmajib, who is also the clueless Finance Minister, clearly does not understand accounts or how to read and interpret the figures in 1GDB's balance sheet.

To put it simply, as at 31st March 2014, 1GDB had RM51.4 billion in assets - cash and "investments" - AND RM49 billion of liabilities in bonds, bank borrowings, derivative debts and trade and other creditors. The surplus of net assets audited and reported were therefore RM2.4 billion (51.4 - 49), represented by RM2.4 billion of capital and reserves.

However, the RM2.4 billion in capital and reserves is inflated by RM3.6 billion of paper profits from revaluation of 1GDB's land bank. If we remove this window dressing, 1GDB's assets would be reduced to RM47.80 billion, i.e. by matching original cost of all assets with all known liabilities. In other words, its liabilities would exceed its assets by RM1.2 billion (49 - 47.8). 

More than that, there is a huge probability that a significant portion of 1GDB's "investments" financed by the RM46 billion borrowings, are showing huge permanent loss in values that cannot be salvaged.

So, the real net asset value of 1MDB, due to gross mismanagement, CBT, fraud and looting, may be negative RM30 billion!!

What PM Grossmajib is saying in trying to pull the wool over everyone's eyes is, never mind, he made a small miscalculation, but 1MDB's land bank has an upside that will more than make up up for the unexplained and missing billions of ringgit. So those asking for his goolies and neck, should close one eye and forget about sending him and the top management of 1MDB, past and present, to prison and be whipped. The PEOPLE should have an amnesia about the gross mismanagement, CBT, fraud and looting at 1GDB.

Today's announcement that Abu Dhabi Commercial Bank Group's IPIC (International Petroleum Investment Company) will finance 1GDB's US$975 million (RM3.5 billion) debt to Duetsche bank and its consortium members, poses more questions than answers. PM Grossmajib has successfully recruited another Deputy Minister in being deliberately vague and obstructive:

"1GDB will provide IPIC and AAbar with a number of financial assets, including "units" that are held in the company's BSI Singapore account."

What does PM Grossmajib and his baruah Deputy Finance Minister mean by this, what deal has one devil done with another?

My reading of this 'new deal" with a "white knight is:

1. The top management of 1GDB, past and present, are not prepared to hop On His Majesty's Service, with a long stay in Kamunting prison. So, they have delivered PM Grossmajib an ultimatum - "Unwind the mess or will will sing like a canary. We have been offered immunity to testify!!"

2. PM Grossmajib in turn, has laid the law down with Jho Paris Hilton, and Abu Dhabi, which must have been in on the scam from day one. The money was probably originally diverted for (CBT) deals that had nothing to do with 1GDB. The beneficiaries, besides Abu Dhabi, would also have been PM Grossmajib, his wife and son, Jho Paris Hilton, Anak Keling (AK) and BUMNO/SCUMNO/Batang Naik. Now that PM Grossmajib is near to being hanged by his goolies, he's begged for the deals to be reversed and money's returned. At the bare minimum, there is a case of CBT had 1GDB.

What is clear as daylight is that 1GDB does not have sufficient cash flow to service debt interest or redeem loans. This is pathetic planning and management. It bespeaks of a PM who has faked a  degree he never had in Industrial Economics.

So, PM Najib should be sacked and sent to prison anyway. 1GDB's land bank is not his personal property. Long, long before 1GDB materialised and hijacked it, many real estate companies had submitted proposals to the government to develop the 565 acres of Sg. Besi and TRX land. They were willing to pay market prices in open tender. So, it never required 1GDB, which had no experience and track record whatsoever in real estate development, to maximise the wealth from these parcels of land on behalf of the PEOPLE.  

I also have not an iota of confidence that the PAC or AG will deliver justice. Name 1 case in recent years where a PAC inquiry or AG's Report resulted in anyone being prosecuted for mismanagement and fraud, and convicted of it in court. They will not nail the culprits. Where such bodies are headed by government nominees, it would be silly of us to think that they will ask for anyone's head on a platter, especially if they are BUMNO/SCUMNO/Batang Naik's members and/or cronies.

So, we have to rely on the likes of an ageing ogre like Maha Firaun to defend the PEOPLe and exact justice. 

In today's blog post, Maha Firaun has again mentioned the RM30 billion private initiative for fraudulent spending by the MoF, funded by two pension funds. The usual suspects - PM and Finance Minister Grossmajib, chief civil servant, sec general of MoF and Economic Plundering Unit - are all involved in cooking up fictitious leasing agreements to siphon RM30 billion out. The beneficiaries of this mega scam are likely to be BUMNO/SCUMNO/Batang Naik whose war chest needs filling to fight by-elections and GE14. The RM30 billion private initiative funding government fraud was first exposed by an opposition politician and publicised also by Kinibiz.

We know there is no hope from the PAC, since after a close-door briefing by the MOF, the PAC head was gushing around saying "Whoa, what wonderful innovative financing scheme!" 

Another worrying piece of news is that ADCB's AAbar owns 49% of Powertek. But, it was announced that 1GDB paid Abar US975 million (RM3.5 billion) to rescind the Powertek option. So, what gives? Have Anal Keling and 1GDB gazumped us again? 

It is everyone's duty to constantly remind Maha Firaun to pursue PM Grossmajib to the end of the earth till we nail him  and his government of thieves for the RM46 billion 1GDB fraud and the RM30 billion "private initiative finance" ponzi scheme.

In such bleak times and in the face of mega billion ringgit thievery and fraud by PM Grossmajib and his government of thieves, beggars can't be choosers; we must take our allies as we find them!



Donplaypuks® with RM76 billion of fraud by government, man!

27/05/2015

PM NAJIB'S SON PARTNER IN AUDITORS DELOITTE - DEFINITE CONFLICT OF INTEREST AT 1MDB!

by china doll wall, donplaypuks® intrepid correspondent for audit affairs

The Opposition and Tony Pua have finally woken up to this worrisome connection between 1MDB, its current auditors Deloitte and PM Najib's son, Nizar Najib. CLICK HERE for details of partners in Deloitte Malaysia and my discovery of it much earlier HERE - scroll down to the comments section.

But first let's recap. Deloitte is 1MD's 3rd auditor! It replaced KPMG which in turn replaced Ernst & Young. They both resigned following unsatisfactory answers from 1MDB's Chairman of Advisers PM Najib, Chairman Lodin Wok, successive CEO's Ismee, Sharola and Hazeman and Finance Directors, to serious audit and accounting queries. 

Now, PM Najib, the Ministry of Finance (MoF), 1MDB and Deloitte will all claim that there is no conflict of interest in Deloitte's appointment as 1MDB's auditors since:

1. Nizar Najib, while being a partner is not the audit partner. He is a partner in the financila advisory services section.

2. There is the 'China Wall' or perhaps 'Bamboo Curtain', meaning that strict confidentially is maintained and the audit side of Deloitte does not communicate or disclose its work and findings to the non-audit side. Its right hand will not know or influence what the left hand is up to.

But, we all know what oils the wheels of government, big business, commerce and audits in the real world, especially with 100% government owned companies with RM51 billion in assets and RM49 billion in liabilities that are on the verge of collapse and requiring government bailout and re-structuring! More so, with 100% government owned businesses that have insufficient income to service debt interest and retire RM46 billion of bonds & bank loans - RM42 billion in bonds/bank loans and RM 4 billion in derivative debts (Mongolian coal-mine, unknown Indonesia venture) - over and above which is another RM3 billion in trade and other creditors!!

When they have to rely on billions of ringgit in government handouts, bailouts and sovereign guarantees, and selling their crown jewels - prime land gifted to it at way below market value - then we all know that the writing is on the wall. 

We should all by now be aware that in the 21st century, we cannot rely completely on signed audit reports as to the financial soundness of a company. The collapse of Enron, Tyco and Global crossings, all audited by one of the Big 4 is clear proof that the game has changed. The crooks and thieves are always 5 steps ahead of the law. In Malaysia we are not short of such scandals e.g. Transmile, Ocean Food, Renong, MAS etc.

No doubt, the auditors are not there to detect frauds and corruption; that is the job of a company's internal auditors and management (Chairman and Board of Directors). But, certain basic tests should be done to unearth the possibility of fraud and ascertain the true health of a company. And if the auditors were lulled into a false sense of security by the fact that the PM was involved knee-deep in 1MDB, and that his son was a partner in their firm, then the fault lies entirely with Deloitte. At the every least, their antenna should have been up, given that EY and KPMG had resigned, and they had qualified the accounts with extensive notes.

Yes, auditors are not, by law, required to perform the job of bloodhounds. Equally, they should not be cowed into being poodles and lapdogs, and sign blindly or be seduced by mega-bucks audit fees.

There is no doubt that the MoF, 1MDB and Deloitte should have publicly disclosed the clear conflict of interest situation. If 1MDB and Deloitte had any sense, they would not have had anything to do with each other vis-a-vis audit. No matter what, now there will be serious public perception that 1MDB's audited accounts are not worth the paper they are printed on.

As an analogy, a person is not given a clean bill of health merely  because a blood test reveals nothing out of the ordinary. By the same reckoning, 1MDB is not safe merely because, on paper, its assets exceed its liabilities. As an external auditor, I would be very worried that land has been revalued to reflect an inflated balance sheet and RM3.6 billion in paper profits, while ignoring cash operating losses of RM3.5 billion. I would be extremely nervous with a a mangement that does not write down declines in the market value of dubious "investments", especially unsecured ones. I would be concerned about a management that doggedly does not provide the public clear answers to the details of RM20-27 billion in investments and cash.

To me, it's clear that the advisers and management of 1MDB shoud be sacked immediately. They should be replaced by receivers appointed by an all-parties select committee of Parliament. The receivers should commission a new audit by a totally new firm of recognised auditors. Only then can we get a clear picture of the true state of affairs at 1MDB. 

Otherwise, we will continue to be fed hazy, conflicting and misleading information by a Prime Minister and his administration who have been caught engaging in 'terminological inexactitudeness' on more than one occasion and on more than one issue, especially since 2009.

As for the conflcit of interest debacle, Deloitte should understand the greater duty it owes the Rakyat, resign forthwith and withdraw its 2014 audit certificate to 1MDB, no matter how embarrassing it may be to their name and reputation. Let PM Najib and Chairman Lodin Wok and new CEO KArul Kanda handle the hot potato at 1MDB.


Donplaypuks® with fake china walls and bamboo curtains and audit, man!

25/05/2015

LYING PM GROSSMAJIB WILL RAPE & SODOMISE TENAGA TO BAILOUT RAPED & SODOMISED 1GDB?

by synergistic unbundling, donplaypuks® intrepid correspondent for public services affairs

With 1Grossmajib Development Bunkum (1GDB), we already have a huge problem for which a solution must soon be found, like yesterday!

$46 billion of debts with about $2.5 billion annual interest cost to service is no joke, especially when there is a huge shortfall in income cash flow to service debt interest and debt capital redemption, on time. CBT, fraud and looting there has not helped either. Default is not an option and asking overseas lenders and creditors to take a sizeable haircut, is a path fraught with danger of the permanent kind. 

What about 1GDB filing for bankruptcy and going into receivership or liquidation? Well, the government has guaranteed $10 billion of these debts. It also has a moral value to honour 100% of debts incurred by a 100% subsidiary of the MoF. Default or filing for bankruptcy will result in a run and possible collapse of the stock and money markets, eventually leading to downgrading of our financial standing by international rating agencies, making it more difficult and costly to borrow in future. A local bank or two and government pension funds may collapse, triggering a recession. 

So, the solution to 1GDB's penury inevitably means government intervention and/or bailout. 

It is not merely the 1GDB debt that is worrying the financial markets. There are also contingencies and off-balance sheet items found nowhere in thr government's budget. The government is repeatedly being vague about the MoF's $30 billion debt to two pension funds funds for so-called "private initiative projects". It is yet again hiding behind the OSA and has not only not satisfactorily explained who and for what exactly this stupendous cash outflow went to, but also, how it is going to repay the $30 billion borrowing. This reeks of yet another government and MoF induced fraud and looting scheme. Need I remind you that PM Grossmajib has also been the Finance Minister since 2008?

It would be criminal of the lying and thieving PM Grossmajib, his government, his Ministers, 1GDB and his handpicked lieutenants, to flog prime land to cover-up for the portion of that unbelievable $46 billion debt that is believed to permanently lost. Profits would not be anywhere near being maximised, and given 1GDB's pathetic track record thus far, would you ask Dracula to guard the just broken-in blood bank?

Some are saying that some $27 billion of that $46 billion is gone forever. 1GDB is an information black hole as the true picture is being deliberately shielded from public eyes and guarded closely by those who have everything to lose from transparency. Being honest, truthful, open, transparent and accountable are no longer options for PM Grossmajib, his Ministers, advisers, 1GDB and his handpicked cronies and lieutenants at 1GDB who face permanent career losses, long jail sentences and public disgrace, shame and loss of face, when the arrests begin.

Regardless, a bailout and restructuring are the only ways to clear up the 1GDB catastrophe and shambles. 

This will of course be tarted up by all these handsomely and over-the-top remunerated PR failures PM Grossmajib surrounds himself with. They will call it industry rationalisation, unbundling of fissionable assets to unlock, liberate and fizz "hidden value", combination of synergistic business units by fusion. The spindoctors will make it all sound as though they have suddenly discovered here and perfected the financial equivalent of that elusive Unified Theory of Everything that Einstein had been working on when he died.

And that is exactly why we should resist at all cost any attempt by that lying and thieving PM Grossmajib to flog and short-change once again the IPP's whipping boy, Tenaga, to save 1GDB and his skin.

We are not the USA or UK. Light years from it. We are a tiny country both in land area and population. We do not need three separate power structures, each working on the profit maximisation business principle, to light the bulbs, power industries and the refrigerators, ovens, washing machines and air-conditioners in our homes. We do not need an energy set-up with separate power generators, transmitters and distributors where electricity is pooled and sold to a Central Power Exchange which will the determine electricity tariffs and pricing for industries, businesses and homes. This approach to retrieving the 1GDB fiasco will only result in more losses, massive increase in sinecure and over-staffed bureaucracy, and another serious whack on the consumer's disposable income while the cronies and their con-sultants laugh all the way to the bank.

It does not mean the current Tenaga monopoly system is perfect or desirable. Little is done to plug leakages. Every time Tenaga's profits decline, tariffs are raised with the usual Ministerial huff and puff about our electricity being the "cheapest in the region" i.e. if you include Neptune, Jupiter and Mars as being our immediate neighbours. The Minister will then pull out his bull-whip, threaten and berate Tenaga:

"You national heroes must, no, will, link tariff hikes with productivity, or heads will roll. No stone must be left unturned in aligning staffing levels with international norms and statistics, you naughty boys."

Last anyone looked, there has been no appreciable staff lay-offs and redundancies in any GLC unless it went totally bust and a government bailout was forced upon it e.g. Mana Ada Systems Airlines. If any, GLCs, being our equivalent of the cradle-to-grave welfare state, have probably seen an increase in staffing levels, with steeply declining productivity. 

Over the last 10 years, on average, Tenaga has paid Malaysia's crony-ridden IPP mafia, some $15 billion a year for electricity it never needed. With rates as high as 38 cents per kw, gas and cheap loan subsidies, tax breaks and 100% cost-pass-through Power Purchasing Agreements (PPA), the IPPs have fleeced Tenaga of $150-250 billion. This is despite Tenaga crying all the way to another mafia arm of the Prime Minister's Office, the EPU (Economic Plundering Unit), and pleading and submitting that it could build safer, more cost-effective and economical power plants faster than the private sector, and produce electricity on average, at less than 1/3 (8 cents per kw) of the cost the IPPs charge Tenaga under their thieving PPAs.

In 2012, 1GDB bought that dirty Anak Keling's (AK) IPP business for $8.5 billion, giving him a profit of $1.7 billion. Then, it was forced by its auditors to immediately write off about $2 billion in its P&L to bring the assets more in line with its actual fair book value! 

So, the reality is that 1GDB paid AK $8.5 billion for a business that many contend was worth far less than even $6.8 billion. AK's local IPP was nearing the end of its concession period, and it was only worth anything if the government, which held a golden share in Tenaga, extended the 21-year concession period AND Tenaga signed a new PPA with it. In a genuine business environment, Tenaga could have had that IPP for next to nothing by just waiting patiently! With electricity reserves somewhere in the internationally unheard of region between 45%-55%, the government DID NOT have to rush with indecent haste and buy AK's IPPs through the 100% MoF owned 1GDB, at all. Also, there was no need to acquire IPPs overseas at inflated prices.

So we have to ask PM Grossmajib and his band of bandits and con-sultants how 1GDB could hive off its depreciating and redundant IPP business acquired for a total of $12.4 billion in cash in 2012-2014, and list it for $13 billion, or 1GDB's "top management" force-feed it into Tenaga at pie-in-the-sky valuation of $17 billion? 1GDB recently, due to lack of money, surrendered its 70% stake in a $11billion power project to who else, but Tenaga. 

Among the most favoured of buzzwords savoured and worshipped by salivating and drooling scorch-earth corporate raiders, otherwise known as corporate rapists and sodomisers across the world world, are, 'synergy' and 'asset unbundling'.

Unbundling would, to these perverts, mean that if Tenaga were to be broken up into three companies, 1 each for power generation, transmission and distribution, then by abracadabra magic, a $1 Tenaga share would morph into $4 in value, and sometimes, even $5.

Synergy, to the same group of perverts would mean that were Tenaga, valued at $1, to acquire 1MDB valued also at $1, and merge, then the combined entity, 1TenagaGDB, would not be worth a mere $2. Again, by abracadabra magic, the shares would have morphed to $3 in value, and sometimes, even $4.

How is this possible in the share markets of the real world, that 1 + 1 can often = 3, and 2-1, also = 3?

The answer is that all known share valuation models - net present value of dividend flow, mark to market and revalued balance sheet, pre and post-tax earnings, replacement, break-up, fire-sale etc. - are imperfect. Share values can be easily manipulated by witholding or leaking price-sensitive information, and by insider trading. Collusion among the few at the top, i.e. major controlling shareholders who also hold executive positions, their fellow directors, chief accountant, lawyers, merchant bankers and auditors, can result in over-stated revenues and understated costs, or vice versa. 

A company's share prices can also be easily driven up or down by investors with huge capital or syndicates pooling their money and acting in concert to play up share prices, with no real change in the entity's underlying asset value. All you need are a sleeping and compliant securities commissions and stock exchanges, and all sorts of fancy projections and promises of El Dorado can be sold to the unsuspecting public as the gospel truth. The public never learns. Too-good-to-be-true investment opportunities are usually too-good-to-be-true. 

Lastly, in a global and over-connected world, the slightest whiff of bad news can spook not only the contra-player, but also the seasoned stock broker and even savvy investment gurus like Warren Buffet. There is no known defence against, or cure for, the herd mentality stampede. Investors are often, totally irrational. 

So, what is the real market acceptable value of 1GDB's IPP asset, if the government gives Tenaga a free hand to negotiate? The government is presumably hoping to cook the books just as it has done recently with awarding a 48-year concession to Kidex for a Highway Toll concessions headed by an ex-DPP and the wife of a former Chief Justice. For sure, if PM Najib is still around, he will force more tariff increases across the board, and lock in regular tariff escalation clauses, regardless of performance, efficiency or productivity. This is his idea of equality - every citizen has the right to be equally screwed by his crooked government.

If the Tenaga deal is not viable due to public outrage and pressure, PM Najib will strong-arm EPF, Socso, KWAP, Tabung Haji, Khazanahn PNG and LTAT to become cornerstone investors of 1MDB's IPP flotation, grossly over-valued at $17 billion on paper. These "national service" heroes will then lock these worthless share certificates in their safes and throw away the keys. Those shares will soon be trading at below 50% of their IPO values, a story similar to a recent Grossmajib engineered palm oil conglomerate IPO flotation.

But, to me, the Tenaga option is the better one. It is my personal belief that small nations should have total control over, and operate business concerning key public services such as electricity, water, gas, education, health, welfare, defence, and infrastructure elements like highways, roads, ports, airports, lotteries, etc. Or else, what's a government for?

Yes, Tenaga is a monopoly and by definition and in practice, monopolies are inefficient and tend to screw their captive customers. It would be the case with any business which is given a free licence to operate with the safety net of government bailout guaranteed if it fails. Management and staff would have no incentive to be innovative, productive and maximise profits if every inefficiency and cost increase can be passed on 100% to powerless consumers. Anyone's grandmother and Uncle Bob could run such a monopoly where every cent lost can recovered by raising prices. The consumer is also forced to pay a premium for sub-standard services, where competition is stifled and kept out by well-connected cronies, and pricing factor in huge annual "donations" to the ruling political party as quid pro quo.

But that need not be the case. The key to solving the universal government monopoly conundrum is management and the right people in government to pro-actively monitor management. Do we have such people? I do not doubt for a second that we do. But, in a nation where cronyism, political patronage, corruption and kick-backs have become the dominant culture of the ruling party, and know-who outweighs know-how and merit, no honest person can thrive or survive in these monopolies and GLCs. So, brain drain is inevitable. If government has difficulties in identifying and engaging such truly honest managers who also have the right dose of patriotic fervour in their bones, I am prepared to volunteer my services for a limited period, at 1/2 what they pay the Minister whose portfolio covers Power, to put together a truly performing phenomenon of a team.

In conclusion:

1. First, arrest PM Grossmajib and his thieving and incompetent Ministers and Deputy Ministers and those in MoF, EPU and 1GDB and their professional advisers responsible for the 1GDB fraud, and put them all behind bars.

2. Issue a warrant of arrest for Jho Paris Hilton if he refuses to return and tell the truth. Relentlessly pursue him in the USA, Europe or Hong Kong and put him behind bars as well or reduce him to a fugitive who will always have to look over his shoulders.

3. File a multi-billion law suit against GS for their over-priced US$400 million fee charged for raising loans for 1GDB. Do not be afraid. Many in the USA also want the GS CEO behind bars. 

4. Transfer back to the government at original cost + subsequent genuine improvements, all the under-priced land sold to 1GDB. Declare the purchase of Penang land as null and void and return the purchase consideration to the sellers, since it was fraudulently acquired from BUMNO/SCUMNO cronies at an inflated price and paid before vacant possession and transfer of title. Next, put up all land for sale by open tender to genuine real estate developers. These buyers must adhere to a proper Master Development Plan sensibly drawn up by the new City Hall.

5. Under no circumstances break up Tenaga into generation, transmission and distribution units, especially by that crooked PM Grossmajib and his government of thieves. Do not create a new Quango to regulate power. The result will be 4 crony-infested entities which will create an even bigger financial meltdown that 1GDB, and where the mass of consumers will be forced into armed riot and insurrection against the government when they can no longer afford to light and power up their homes, offices and factories.

6. Let Tenaga engage an independent expert to value 1GDB's IPP assets and buy them over. The sale proceeds from the land and IPPs should be wholly used by the MoF to whittle away 1GDB's $46 billion debt.

7. Tenaga should be allowed to re-negotiate with all remaining IPPs to take over them on whatever value Tenaga thinks fair, with extended terms of payment at no interest cost, since the EPU arm-twisted Tenaga into awarding extortionate kilowatt rates to the IPPs, and the IPPs have been enjoying super profits at the expense of Tenaga and the Rakyat. If any IPP used bank borrowings for non-IPP projects/expenses, that portion should be transferred to the controlling shareholders to settle with the respective bank lenders. In a couple of years, Tenaga should be turning in super profits by reducing its electricity reserves to a sensible 20%, closing down expensive and inefficient IPPs which will eventually minimise the $15-20 billion subsidy per year it has been criminally taken for a ride by the IPP mafia since 2000.

8. Tenaga should negotiate with all 1GDB's banks and lenders, and ask them all to take a haircut on the $46 billion bonds and loans. This won't be easy, but it is necessary and vital. Some of the bonds, I believe, have penalty clauses for early redemption. Who advised/conned 1GDB into agreeing to such stupid terms? With sovereign guarantees, 1GDB should have been able to negotiate below market interest rates, instead of being conned into paying stupefying 8% and 11%  interest rates and jaw dropping yields. 

If managed carefully and properly, the 1GDB nightmare can be resolved without the stock and money markets going into a tailspin. All the lenders, banks and creditors must be met individually and told the truth and their co-operation won over. That's what and where we need good PR men for, not that coterie engaged by PM Grossmajib to lie, cover up and mislead the Rakyat for pilfering, freeloading, cheating, defrauding and looting from public coffers.

A similar exercise should be undertaken to restructure the water business where the cronies have their claws hooked into, and where water shortages are manufactured with Federal Government connivance to panic and inconvenience the Rakyat, to commission more unnecessary $billion ringgit inflated water treatment and distribution plants, and enrich the war chests of BUMNO/SCUMNO/ Barang Naik.

We have the people who have the intelligence, talent, drive, know-how and initiative to force desirable changes in government and public services. It only requires the right people and a tenacious exercise of will power to pull it off. Nothing is beyond the pale if we put our minds to it!

Donplaypuks® with our government and public services, man!

24/05/2015

UNITS WE STAND, CASH WE FALL. A GOVT. OF THIEVES AND INVETERATE LIARS. PM NAJIB SHOULD BE IMPEACHED AND REMOVED FROM OFFICE FORTHWITH!

by richard m. nixon clinton monica lewinski, donplaypuks® intrepid correspondent for impeachment affairs


The entire debacle of 1MDB's US$1.103 billion or RM3.9 billion said to have been deposited with BSI bank, Singapore, has been handled with the delicacy and finesse of a raging bull encountering a virgin heifer in heat in a china shop, by Prime Minister Najib. More than that, it has proven that we now have a rogue prime minister (Najib)  and government administration in operation.

It is our duty to pull out all the stops and pressure our elected MP's to move for impeachment procedures against Prime Minister Najib in Parliament. We may not have the votes, so if that strategy fails, we should collect a million signatures or more and send a petition to the Agung (King) to use his powers to sack this government of thieves and liars, and call for fresh elections.

To recap, 1MDB had claimed in January that US$2.3 billion or RM8.2 billion of its funds had been redeemed in the Cayman Islands from a JV with Petro Saudi. 

In January the Ministry of Finance confirmed that of this, the second tranche of US$1.103 billion or RM3.9 billion had been placed as a US$ cash deposit with 1MDB Brazen Sky Limited's account with the Singapore branch of BSI or Banca della Svizzera Italiana. BSI's main office is based in Switzerland. CLICK HERE.

In February, 1MDB CEO Arul Kanda told Business Times Singapore that the funds were not repatriated to Malaysia and converted into Malaysian ringgit, as 1MDB had US$ denominated borrowings to repay outside Malaysia, and that it would be "sensible" to utilise it for this purpose.  

On March 11 this year, PM Najib who is also the Finance Minister, confirmed in Parliament via a written reply to a query from Opposition DAP MP Tony Pua, what had earlier been stated by the MoF and 1MDB CEO Arul Kanda regarding the cash deposit with BSI Singapore. More curious was this statement by PM Najib:

"The decision to to use BSI Singapore is to facilitate easier withdrawals since regulations set by Bank Negara Malaysia (BNM) needed its approvals for transactions over RM50 million".

This sounded like 1MDB wanted to bypass the laws of the country regarding money laundering. Why should 1MDB fear BNM interference if its dealings were above board? Why would BNM obstruct or delay 1MDB from making bona fide loan repayments?

More than that, suspicions were raised when it was revealed that 1MDB had problems in repaying a loan of RM2 billion, and that it was negotiating with Malaysian tycoon Ananda Krishnan (AK) to either re-finance the debt or assist them in resolving a possible default. This was a curious state of affairs, given that in 2012 AK had sold his IPP assets for RM8.5 billion to 1MDB. Now he appears to have guaranteed some of 1MDB's loans, as security for which, he had some kind of option to buy 1MDB shares on listing. 

To-date 1MDB has remained vague about the details of its contractual terms and obligations with parties such as Petro Saudi and Abu Dhabi Commercial Bank (ADCB) which also holds option entitlements. 

In the end, the MoF clarified the RM2 billion had been repaid, re-financed by a group of local investors and a RM950 million "standby credit line" provided by the Taxpayer. Apparently, AK had been instrumental in securing the local investors, while other sources claim that AK funded it himself through one his own companies. Why exactly AK would stick his neck out gor 1MDB, is not clear.

And given what followed, no one can place any reliance on a single word coming out from the PMO or MOF on 1MDB.

It of course begs the question that if 1MDB had US$1.103 billion (RM3.91 billion) parked in BSI Singapore, why that money could not have been used to repay the RM2 billion debt.

In April Sarawak Report had disclosed that 1MDB's CEO Arul Kanda had furnished false bank statements to the Singapore authorities:


“We were passed disturbing evidence showing that BSI Bank had dismissed documents supplied by 1MDB relating to the accounts for Brazen Sky Limited in Singapore. 

The documents were supplied to various authorities by 1MDB’s Arul Kanda and purported to show Brazen Sky’s statement of accounts in November 2014. However, the Swiss private bank has told the Singapore authorities that the document did not originate from them and does not represent a true account of the assets of the 1MDB subsidiary. 

The information about the bank statements was reported back to Malaysia on March 13, two days after Prime Minister and Finance Minister Datuk Seri Najib Razak issued a parliamentary reply that confirmed that the remaining US$1.103 billion had been “redeemed” from Brazen Sky’s alleged offshore fund in the Cayman Islands and was now being “kept in US currency” at BSI Bank Limited in Singapore.

Information obtained in Singapore had corroborated that there was no actual cash in the relevant Brazen Sky Limited account. The account merely contained paper assets, the true value of which cannot be determined.

This new information raises huge new concerns about the management of 1MDB on the day that (DAP lawmaker) Tony Pua has himself revealed the extent to which electricity prices for Malaysian customers are due to be hiked (in some cases by over 20%) as part of the government’s efforts to bail out the failing development fund through a series of favoured power deal concessions.

It is confusing how the 1MDB money trail had been, with years of twists and turns in the various accounts provided by 1MDB as to what happened to the money supposedly retrieved by the fund after it terminated its ill-fated first joint-venture with the company PetroSaudi International in 2009.

We have now seen evidence that Arul Kanda did privately submit documents from 1MDB to relevant authorities, in order to apparently substantiate the various claims about 1MDB’s BSI Bank account in Singapore.

The evidence showed that he had sent copies of bank statements to regulatory bodies, which were then passed to BSI Bank in Singapore. These included a November 2014 bank statement for Brazen Sky Limited’s account at BSI Bank."



The answer arrived via a statement from PM Najib via the Ministry of Finance on 20th May. Najib revealed that the US$1.103 deposit with BSI Singapore was not in cash as stated by him earlier, but in US$ denominated "assets". The shit hit the fan. It was clear that more than one person from 1MDB had lied and misled Parliament and the public,

On 21st May, Second Finance Minister Ahmad Hanadzlah held a press conference and claimed that PM Najib and the MOF's earlier Parliamentary reply regarding "cash deposit" with BSI Singapore were mistakes:


“There’s a mistake… mistake in the sense that, the impression (given by 1MDB) when they said they have redeemed (the funds) and saved (them) in the Singapore bank (Singapore BSI).... so the impression is that there’s cash, (but) actually that is a saving,” Ahmad Husni said told reporters at the Dewan Rakyat today. 

That (the redemption) is (in) unit... that’s what it is… in unit, and then, that is being backed sovereign wealth funds,” Ahmad Husni said, but declined to explain further what he meant by “units”."



When pressed further what he meant by "units" Handzlah refused to shed any light on it. It's incredible that this foot-in-mouth expert of a Deputy Finance Ministry managed to keep a straight face during this press conference. The next day, PM Najib did not waste time defending 1MDB EO Arul Kanda:


"Your statement that Arul Kanda received bank statements not owned by BSI is untrue," said Finance Minister Datuk Seri Najib Razak in a written reply to Datuk Mohd Ariff Sabri Abdul Aziz (DAP-Raub" 


As far as I aware, the only investments that are stated in units are those in Unit Trusts. Otherwise, we may invest in units in a condominium or housing project. So, wtf does Hanadlzah mean by "units", and what is he trying to fabricate and conceal on behalf of 1MDB? In the first place, such "units" could not have been transferred to BSI Singapore. So, any bank statement claiming there was cash MUST have been falsified and fabricated by someone in 1MDB and/or at the MoF.

What is obvious is that, there was no cash to begin with. Even if there was, it must have been secured against 1MDB's RM46 billion super debt, and could not be touched.

So, to cover one lie, they have come up with a slew of them. Now its "units" which, because of OSA, ISA, POTA and the Sedition Act, cannot be revealed to you, poor innocent, ignorant child, the Rakyat.

PM Najib has bred a cesspool of of thieves and liars in government; he himself is one. They would not recognise truth and honesty if it hung from their noses and wiggled. They engage spindoctors who try and fools us with semantics:

Question: Does Stadlen work for the government and is he being paid a remuneration? Answer? No. 

This a tongue-in-cheek answer, when it's obvious he's under a contract and paid a gynormous fee to spindoctor on behalf of PM Najib. Of course, it's also the fault of our education system that many MP's do not know how to properly frame questions in Parliament so that Najib cannot wriggle around them.

So, its very, very obvious that PM Najib and his band of merry Ministers and civil servants at the PMO and MOF are assisting, aiding and abetting 1MDB in covering up corruption, bribery, CBT, fraud and theft. PM Najib, as also the Finance Minister and mastermind behind the creation of 1MDB, and who has been its Chairman of Advisers since inception, can hardly plead ignorance of the mess, fiasco and disarray at 1MDB, PMO and MoF.

If anything, his hands are dirty too from complicit involvement in the heist of the century, the looting of RM46 billion of the Rakyat's hard earned money. No honest PM and Minsiter would talk about "units" and point blank refuse to explain further. 

We also know that PM Najib will not leave voluntarily, as a matter of personal integrity and honour. So, WE The Rakyat must help push Najib and his RM17 billion entourage out of Putrajaya, and 1MDB and its RM46 billion robbers, into the lock-up in Kamunting, OHMS, post haste!

So, PKR, PAS and DAP, what are you waiting for, why are you hestitating?

Carpe Diem - seize the day! Get impeachment proceedings going, like yesterday. Get an sudience with the Agung and the conference of Rulers. Petition the Agung for an RCI on the Altantuya murder. Organize Bersih 4. Put the pressure on PM Najib. We need to disinfect and detoxify the Prime Minister and his  Office, to save Malaysia from prolonged recession and utter ruin.

"The decision to use BSI Singapore (is) to facilitate easier withdrawals since regulations set by Bank Negara Malaysia needed its approval for transactions over RM50 million, - See more at: http://www.themalaysianinsider.com/malaysia/article/balance-of-1mdbs-caymans-funds-in-singapore-says-najib#sthash.gfVnO8lq.d

 Donplaypuks® with lies and the future of Malaysia, man!